Resale homes in the U.S. unexpectedly fell in May





23.06.2010 11:29
Sales in the secondary housing market in U.S. in May fell by 2,2% - to 5.66 million homes at an annual rate, according to data of National Association of Realtors.

The previous month, compared with 5.79 million homes, and not 5.77 million, as previously reported.

Analysts polled by Bloomberg, expecting sales growth of 6% from the earlier announced the April level - up to 6,12 million

Economists believe that the observed in May, a decline in the secondary housing market in the U.S. reflects, first, termination proposed by the U.S. government tax incentives provided to citizens, first-time buyers. Reducing the cost of the shares of construction companies in the middle of April far exceeded the fall in the rest of the stock market because of rising fears that a weak labor market and increasing the number of foreclosures on mortgages in arrears may negatively affect the recovery of the housing market - one of the key sectors of the U.S. economy.

"The housing market is extremely weak and vulnerable", - said an analyst at State Street Global Markets, John Erman.

Number of homes for sale fell last month on 3,4% - to 3.89 million at the current pace of sales would take 8.3 months to sell all of them. In April, it would take 8.4 months.

The average cost of housing in the U.S. last month rose by 2,7% - to $ 179.6 thousand from $ 174.8 thousand in May 2009

Interfax-Ukraine
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